IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v157y2022ics1364032121012818.html
   My bibliography  Save this article

Opportunities and challenges of mainstreaming distributed energy resources towards the transition to more efficient and resilient energy markets

Author

Listed:
  • López González, Diana María
  • Garcia Rendon, John

Abstract

The incorporation of distributed energy resources (DERs) has been generalized worldwide as part of the energy transition. A review of the literature in the most important scientific databases shows that this transformation has enabled the participation of final users in capacity auctions, as is the case of Germany, the opening to diverse business models, as in the United Kingdom, and the valuation of energy resources according to different times and places, as in the United States. In Australia, it has brought about the linkage of the retail market with the wholesale market, making it clear how distributed generation can contribute to minimizing costs through collaboration agreements. The common objective in these four leading countries is to compensate for possible misalignments between the cost, price and value of electricity caused by this transition. DERs have generated more competitive and innovative structures, which represents a transcendental opportunity to integrate technologies that complement the generation matrix and to pluralize participation towards a more efficient and resilient energy market.

Suggested Citation

  • López González, Diana María & Garcia Rendon, John, 2022. "Opportunities and challenges of mainstreaming distributed energy resources towards the transition to more efficient and resilient energy markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:rensus:v:157:y:2022:i:c:s1364032121012818
    DOI: 10.1016/j.rser.2021.112018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032121012818
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2021.112018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carvallo, Juan Pablo & Zhang, Nan & Murphy, Sean P. & Leibowicz, Benjamin D. & Larsen, Peter H., 2020. "The economic value of a centralized approach to distributed resource investment and operation," Applied Energy, Elsevier, vol. 269(C).
    2. Youssef, Ayman & El-Telbany, Mohammed & Zekry, Abdelhalim, 2017. "The role of artificial intelligence in photo-voltaic systems design and control: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 72-79.
    3. Kakran, Sandeep & Chanana, Saurabh, 2018. "Smart operations of smart grids integrated with distributed generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 524-535.
    4. Brinker, Laura & Satchwell, Andrew J., 2020. "A comparative review of municipal energy business models in Germany, California, and Great Britain: Institutional context and forms of energy decentralization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    5. Mahmud, Khizir & Khan, Behram & Ravishankar, Jayashri & Ahmadi, Abdollah & Siano, Pierluigi, 2020. "An internet of energy framework with distributed energy resources, prosumers and small-scale virtual power plants: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    6. Poplavskaya, Ksenia & de Vries, Laurens, 2019. "Distributed energy resources and the organized balancing market: A symbiosis yet? Case of three European balancing markets," Energy Policy, Elsevier, vol. 126(C), pages 264-276.
    7. Zarnikau, Jay, 2011. "Successful renewable energy development in a competitive electricity market: A Texas case study," Energy Policy, Elsevier, vol. 39(7), pages 3906-3913, July.
    8. Roberts, M.B. & Bruce, A. & MacGill, I., 2019. "Opportunities and barriers for photovoltaics on multi-unit residential buildings: Reviewing the Australian experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 95-110.
    9. Nelson, Tim & Pascoe, Owen & Calais, Prabpreet & Mitchell, Lily & McNeill, Judith, 2019. "Efficient integration of climate and energy policy in Australia’s National Electricity Market," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 178-193.
    10. Hess, David J. & Lee, Dasom, 2020. "Energy decentralization in California and New York: Conflicts in the politics of shared solar and community choice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    11. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.
    12. Simpson, Genevieve, 2017. "Network operators and the transition to decentralised electricity: An Australian socio-technical case study," Energy Policy, Elsevier, vol. 110(C), pages 422-433.
    13. Matschoss, Patrick & Bayer, Benjamin & Thomas, Heiko & Marian, Adela, 2019. "The German incentive regulation and its practical impact on the grid integration of renewable energy systems," Renewable Energy, Elsevier, vol. 134(C), pages 727-738.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Renos Rotas & Petros Iliadis & Nikos Nikolopoulos & Ananias Tomboulides & Elias Kosmatopoulos, 2022. "Dynamic Simulation and Performance Enhancement Analysis of a Renewable Driven Trigeneration System," Energies, MDPI, vol. 15(10), pages 1-27, May.
    2. Luis Fernando Grisales-Noreña & Oscar Danilo Montoya & Jesús C. Hernández & Carlos Andres Ramos-Paja & Alberto-Jesus Perea-Moreno, 2022. "A Discrete-Continuous PSO for the Optimal Integration of D-STATCOMs into Electrical Distribution Systems by Considering Annual Power Loss and Investment Costs," Mathematics, MDPI, vol. 10(14), pages 1-16, July.
    3. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    4. Brandon Cortés-Caicedo & Luis Fernando Grisales-Noreña & Oscar Danilo Montoya & Miguel-Angel Perea-Moreno & Alberto-Jesus Perea-Moreno, 2022. "Optimal Location and Sizing of PV Generation Units in Electrical Networks to Reduce the Total Annual Operating Costs: An Application of the Crow Search Algorithm," Mathematics, MDPI, vol. 10(20), pages 1-22, October.
    5. Vladislav Volnyi & Pavel Ilyushin & Konstantin Suslov & Sergey Filippov, 2023. "Approaches to Building AC and AC–DC Microgrids on Top of Existing Passive Distribution Networks," Energies, MDPI, vol. 16(15), pages 1-26, August.
    6. Nascimento, Viviane Tavares & Gimenes, Patricia Albuquerque & Morales Udaeta, Miguel Edgar & Veiga Gimenes, André L. & Riboldi, Victor Baiochi & Ji, Tuo, 2023. "Transition mapping for modern energy service provision under uncertainty: A case study from Brazil," Utilities Policy, Elsevier, vol. 84(C).
    7. Meng Peng & Li Tan & Huan Li & Jin Wu & Tao Ma & Hongzhang Xu & Jiayu Xu & Weidong Zhao & Jiming Hao, 2023. "Energy Transitions in Yunnan Province Based on Production Function Theory," Energies, MDPI, vol. 16(21), pages 1-15, October.
    8. Dorahaki, Sobhan & Rashidinejad, Masoud & Fatemi Ardestani, Seyed Farshad & Abdollahi, Amir & Salehizadeh, Mohammad Reza, 2023. "An integrated model for citizen energy communities and renewable energy communities based on clean energy package: A two-stage risk-based approach," Energy, Elsevier, vol. 277(C).
    9. Mukherjee, Maitreyee & Jensen, Olivia, 2022. "Open Water: Impacts of Retail Competition on Service Performance and Water-Use Efficiency in England," Utilities Policy, Elsevier, vol. 79(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oduro, Richard A. & Taylor, Peter G., 2023. "Future pathways for energy networks: A review of international experiences in high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    2. Rai, Alan & Nunn, Oliver, 2020. "On the impact of increasing penetration of variable renewables on electricity spot price extremes in Australia," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 67-86.
    3. Woo, C.K. & Milstein, I. & Tishler, A. & Zarnikau, J., 2019. "A wholesale electricity market design sans missing money and price manipulation," Energy Policy, Elsevier, vol. 134(C).
    4. Jesús Botero García & David Cardona Vásquez & John García Rendón, 2019. "Energy transition in Germany and integration of non-conventional energy sources," Documentos de Trabajo CIEF 17784, Universidad EAFIT.
    5. Hartley, Peter R. & Medlock, Kenneth B. & Jankovska, Olivera, 2019. "Electricity reform and retail pricing in Texas," Energy Economics, Elsevier, vol. 80(C), pages 1-11.
    6. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    7. Pia Szichta & Ingela Tietze, 2020. "Sharing Economy in der Elektrizitätswirtschaft: Treiber und Hemmnisse [Title sharing economy in the electricity sector: drivers and barriers]," NachhaltigkeitsManagementForum | Sustainability Management Forum, Springer, vol. 28(3), pages 109-125, December.
    8. Wakiyama, Takako & Zusman, Eric, 2021. "The impact of electricity market reform and subnational climate policy on carbon dioxide emissions across the United States: A path analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    9. Antoine Boche & Clément Foucher & Luiz Fernando Lavado Villa, 2022. "Understanding Microgrid Sustainability: A Systemic and Comprehensive Review," Energies, MDPI, vol. 15(8), pages 1-29, April.
    10. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    11. Wilkinson, Sam & Maticka, Martin J. & Liu, Yue & John, Michele, 2021. "The duck curve in a drying pond: The impact of rooftop PV on the Western Australian electricity market transition," Utilities Policy, Elsevier, vol. 71(C).
    12. Chen, Ting & Vandendriessche, Frederik, 2023. "Enabling independent flexibility service providers to participate in electricity markets: A legal analysis of the Belgium case," Utilities Policy, Elsevier, vol. 81(C).
    13. David P. Brown & Andrew Eckert & Douglas Silveira, 2023. "Strategic interaction between wholesale and ancillary service markets," Competition and Regulation in Network Industries, , vol. 24(4), pages 174-198, December.
    14. Würzburg, Klaas & Labandeira, Xavier & Linares, Pedro, 2013. "Renewable generation and electricity prices: Taking stock and new evidence for Germany and Austria," Energy Economics, Elsevier, vol. 40(S1), pages 159-171.
    15. Karlson Hargroves & Benjamin James & Joshua Lane & Peter Newman, 2023. "The Role of Distributed Energy Resources and Associated Business Models in the Decentralised Energy Transition: A Review," Energies, MDPI, vol. 16(10), pages 1-15, May.
    16. Wadim Strielkowski & Dalia Streimikiene & Alena Fomina & Elena Semenova, 2019. "Internet of Energy (IoE) and High-Renewables Electricity System Market Design," Energies, MDPI, vol. 12(24), pages 1-17, December.
    17. Roth, Jonathan & Martin, Amory & Miller, Clayton & Jain, Rishee K., 2020. "SynCity: Using open data to create a synthetic city of hourly building energy estimates by integrating data-driven and physics-based methods," Applied Energy, Elsevier, vol. 280(C).
    18. Aldona Standar & Agnieszka Kozera & Łukasz Satoła, 2021. "The Importance of Local Investments Co-Financed by the European Union in the Field of Renewable Energy Sources in Rural Areas of Poland," Energies, MDPI, vol. 14(2), pages 1-23, January.
    19. Ashraf Zaghwan & Indra Gunawan, 2021. "Energy Loss Impact in Electrical Smart Grid Systems in Australia," Sustainability, MDPI, vol. 13(13), pages 1-34, June.
    20. Ahmad, Muhammad Waseem & Mourshed, Monjur & Rezgui, Yacine, 2018. "Tree-based ensemble methods for predicting PV power generation and their comparison with support vector regression," Energy, Elsevier, vol. 164(C), pages 465-474.

    More about this item

    Keywords

    Distributed energy resources; Distributed generation; Energy market; Energy transition; Opportunities and challenges; Renewable and non-conventional energy sources;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:157:y:2022:i:c:s1364032121012818. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.